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Even if it's not a huge purchase, we think it was good to see that Jaspaul Doman, the CEO & Executive Director of GreenFirst Forest Products Inc. (CVE:GFP) recently shelled out CA$112k to buy stock, at CA$1.73 per share. Even though that isn't a massive buy, it did increase their holding by 81%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At GreenFirst Forest Products
In the last twelve months, the biggest single purchase by an insider was when Independent Director Marty Proctor bought CA$135k worth of shares at a price of CA$6.75 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.80). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
GreenFirst Forest Products insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$2.91. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that GreenFirst Forest Products insiders own 6.5% of the company, worth about CA$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About GreenFirst Forest Products Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest GreenFirst Forest Products insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - GreenFirst Forest Products has 2 warning signs we think you should be aware of.
But note: GreenFirst Forest Products may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.